Preview: United Community Banks's Earnings

United Community Banks UCBI will be releasing its next round of earnings this Tuesday, July 20. For all of the relevant information, here is your guide for Tuesday's Q2 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

United Community Banks EPS will likely be near $0.63 while revenue will be around $169.28 million, according to analysts. United Community Banks earnings in the same period a year ago was $0.32 per share. Quarterly sales came in at $116.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 96.88%. Sales would be up 45.93% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the last 52-week period, shares are up 54.21%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. United Community Banks is scheduled to hold the call at 11:00:00 ET and can be accessed here.